CBP Marketing and Business Development 3

Question 1

What is brand equity?

Accepted Answer

The premium value a brand adds beyond the functional value of a product

Answer

Brand equity refers to the added value that a well-known brand name provides to a product beyond its functional attributes, often enabling a company to charge a premium price.

Question 2

In Ansoff's Matrix, what is 'market development'?

Accepted Answer

Introducing an existing product to a new market

Answer

Market development involves taking an existing product and entering a new market segment or geographic territory to drive business growth.

Question 3

What is the primary purpose of conducting a competitive analysis?

Accepted Answer

To understand competitors' strengths and weaknesses in order to identify opportunities and threats

Answer

Competitive analysis helps a business understand rival companies' strategies, strengths, and weaknesses to inform better decision-making and uncover market opportunities.

Question 4

What does ROI stand for in a business and marketing context?

Accepted Answer

Return on Investment

Answer

ROI (Return on Investment) measures the profitability of an investment by comparing the net profit gained relative to the cost of the investment.

Question 5

Which distribution strategy involves selling through a limited number of carefully chosen retail outlets, commonly used for premium or specialty products?

Accepted Answer

Selective distribution

Answer

Selective distribution uses a limited number of retail outlets to balance market coverage with maintaining control over how the product is presented and sold.

(CBP) Certified Business Professional Practice Test

(CBP) Certified Business Professional Practice Test

CBP Marketing and Business Development 3